Blockchain Data and Car Insurance

The insurance industry has been working hard to stay up to date with modern technology. Already the industry is making use of predictive analytics to help create customized plans.

This raises the question of how blockchain technology can help the industry. A blockchain is a way to securely store information. The highlight of this method would be the inability to change data once it has been established. In other words – hacking and malicious attempts at alterations will not work.

Smart Contracts

Smart contracts are but one of the ways that blockchain data and car insurance companies have found a perfect balance. Contracts are a part of daily life – especially for insurance companies. A smart contract is simply a more advanced version of the original. 

In this instance, they are digitally signed and stored through secure digital means (blockchain data). All parties involved in the contract, including the neutral third party, can access this data.

Due to the digital nature of smart contracts, it allows for a certain amount of automation. A computer can look at the contract, and if the terms have been met, activate the appropriate next step.

Advantages of Blockchain Data

Many advantages come from blockchain technology, including the information already mentioned in the section above. Digital contracts allow for ease of access – both for the insurers and the insured.

In turn, this helps erase confusion, increase communication, and, more importantly – ensure accurate information. For example, fraudulent claims will dwindle, as all relevant data will be stored in one location. To put it another way, it’ll be simpler than ever to catch fraudulent claims. 

The customer will also have higher levels of protection, as the data will be stored with a neutral third party. This will help ensure that the insurance companies hold up their end of the deal and leave avenues for when things do not happen according to plan.

Insurance companies can use this ready access to data to store client details, going beyond what is typical these days. Data such as driving habits, traffic records, and accidents can all be easily (and safely) stored in one location. 

While that may not sound like a significant advantage – it is. All of the data being in one place would further encourage customized plans, which would once again benefit both parties.

Predictive Analytics and Car Insurance

With the way technology has been improving, it would inevitably begin impacting every industry out there—even the insurance industry, where developments such as predictive analytics have been making waves.

Predictive analytics is a form of machine learning that uses data (usually in the form of statistics and historical data) and algorithms to identify patterns and future possibilities. When it comes to insurance, that can make a world of difference for insurers and clients alike.

How It Works

As a whole, predictive analytics has been a growing trend, with many different industries trying unique ways to apply the technology. Predictive analytics has become so common that anyone spending any time online has likely come across it. Predictive analytics play a part in ad generation, search engine optimization, and website recommendations. And it’s all based on an individual user’s history.

Predictive Analytics Meets Car Insurance

When it comes to car insurance, there’s a lot that predictive analytics can do to help improve the industry. For one thing, it can (and will) allow for a more personalized experience. Gone are the days when an insurance plan was one size fits all.

These days, machine learning can grind through a driver’s history and develop a custom insurance plan uniquely suited to them. For example, a safe driver with a record of following speed limits, wearing seat belts, and avoiding tickets can rest easy knowing that they got the best deal possible.

Applications of Predictive Analytics

The possibilities for predictive analytics don’t end there. That’s the beauty of this customization engine. Insurance companies can use this technology to compile crash data and even flag fraudulent claims. It all depends on the data they feed the program.

Marketing campaigns have already begun to make heavy use of predictive analytics, and soon insurance companies could be doing the same thing. Let’s go back to that online example from earlier. A person hops online, does some browsing, and calls it a day. The next day, they get an email advertising a sale on an item they were looking at. This is not a coincidence but rather a carefully orchestrated plan.

Insurance companies can do the same thing – marketing the right plan to the right clients and knowing how to best approach them. Some clients prefer to be approached via email, others via phone or text. Machine learning can help process that information and create a personalized plan for thousands of potential clients.

Auto Tech Driving Insurance Explained

Our interactions with cars change every year as new technology comes out to improve the experience. As such, auto insurance must find ways to adapt right alongside the industry. This is no mean feat and takes a lot of careful planning. 

Most recently, auto insurance companies have begun to develop automated ways of measuring and creating new plans. There are many benefits to this feature, including highly customizable plans.

The Complication

There is one complication with the plan to go full automation when it comes to insurance: people’s willingness. According to CCC Information Services, Inc.’s Crash Course report, until recently, most drivers were unwilling to share such detailed and personal information.

What sort of information do these metrics require? The predominant concern revolves around mileage. New features allow for easy personal data collection, including driving details, travel speed, and location.

Up until recently, only 41% of those surveyed were willing to share their data. That number has gone up to 54% and is likely due to the changes that the pandemic brought with it. Primarily the reduced time spent in cars.

One of the main concerns from users, unsurprisingly, is the breach of privacy. Specifically, these features would require drivers to give up information such as where they at which times, which can be a deal-breaker for many. According to a study run by Pew Research Center, only 37% of Americans found the offer appealing, even when taking benefits into account.

Benefits

Despite these concerns, there are plenty of benefits that come with auto tech driving insurance. Primarily, the data used to create an individual’s plan would be based on their driving – and theirs alone.

Instead of filling out several complicated forms, drivers can instead give access to their data metrics, allowing insurance companies to create an accurate and detailed plan that fits the users’ needs. It sounds complicated, but in truth, it makes things simpler. 

This practice is called usage-based insurance. In practice, it works through an app on your phone, which then transmits data to your insurance company. Most companies experimenting with the tech provide rewards for using the app – rewards that get better the more you use it.

Insurtech Explained and What It Means for Car Insurance

The advent of Artificial Intelligence (AI) is changing the way many industries operate; there’s no escaping it. Even the insurance industry is facing change, thanks to the creation of Insurtech, aka Insurance Technology.

What is Insurtech? 

Insurtech is a term for a broad range of technology, all of which is applied towards the insurance industry. More specifically, it’s the use of artificial intelligence and blockchains in the insurance industry. This applies to car, medical, life, and home. 

Insurtech was created to save insurance companies money, streamline the process, and make better and customized customer service. In the last few years, the Insurtech industry has boomed. New startups and older businesses alike are competing to create the best models, and it’s altering the way we look at insurance.

What Are the Different Types of Insurtech?

There are now several different types of Insurtech, a variety formed from the many different needs of the insurance industry. Each style has a different specialty, and there’s no need for mutual exclusivity between companies and types.

  • Artificial Intelligence/Machine Learning – Used for personalized services, competitive pricing models, predictive analytics, and chatbots.
  • The Internet of Things (IoT) – IoT is used for omnichannel communication and telemetry-based insurance policies and claim processing. 
  • Blockchain – Used to prevent fraud, create smart contracts, and help to track sensitive data.
  • Robots/Drones/Etc. – Can assist in designing programs, plans, find risk factors, operate where it is unsafe for humans, and create automation.

How Does Insurtech Work?

The end goal of Insurtech is convenience and efficiency. This technology has been designed to help both internally and externally. Meaning that the insurance companies and their clients both gain an advantage through its use.

Theoretically, Insurtech will make insurance more accessible, lower costs, decrease wait times, and allow for customized claims. All while reducing payroll costs, as there isn’t a person behind all of this.

What Are the Benefits of Insurtech?

Many of the benefits for Insurtech have already been mentioned above. They include: customized insurance policies, reduced run costs for insurance companies, better claims management, and better customer-facing tech, including apps and chatbots.

What Are the Concerns of Insurtech?

As with any rising technology, there will naturally be some concerns to go along with it. The dominant concern regarding Insurtech is privacy. Consider all of the private and sensitive information that insurance companies must collect and store. The introduction of any new technology always increases concern regarding the safety of this sort of information.

 

Personalizing the Auto Insurance Industry with the Help of AI

Every day digital advancements change the way we look at and interact with the world. New ways of sharing information and collating data have made things in some ways simpler, even in complex areas such as auto insurance.

Advancements in AI (Artificial Intelligence) are the most likely to bring a great chance to auto insurance. Currently, we are looking at an insurance market that has changed very little over the years. The real question is, how much longer can stagnation last?

AI still has a long way to go before it is on par with the beings portrayed in science fiction novels. Still, there are plenty of ways for modern AI to help the insurance world. AI processes can help with pricing, handling claims, and fraud detection, just to name a few options.

The advantage of using AI to set prices comes with the ability to create individualized and personalized policies. An insurance company that employs this tactic will provide custom quotes curtailed to the clients’ needs, creating a competitive advantage. 

Artificial intelligence could easily customize these policies based on user location, marital status, family status, the likelihood of premium charges, driving history, and more. Most notably, it could also make sure of IoT (Internet of Things) to draw in more personalized data.

Given the potential power of AI, the level of personalization is limitless. The policy could go beyond personal records and look into the car the coverage is intended for. Here crash and injury data could quickly come into play, as well as automotive history.

As for handling claims? It wouldn’t take much effort to automate the handling of certain claims through the use of artificial intelligence. This would save time and money in the long run and give clients a faster customer service experience.

In turn, this would shorten the time required for settling claims. This will result in happier customers, but it will help limit fraud cases in the process. This is a vital element, as insurance fraud is currently costing companies around $40 billion per year. AI can easily detect fraudulent cases, diminish risks, and streamline the process for legitimate cases.

 

The Advantages of Owning an Autonomous Car

Autonomous cars used to be something we only dreamed about, much like jetpacks and robotic butlers. They have come to fruition within the last decade in various stages of assisted technology. Fully autonomous cars have yet to become mainstream due to affordability and continued testing. There are many debates about the advantages and disadvantages of this type of technology. To date, the benefits seem to be significant.

Fewer accidents have occurred with autonomous vehicles at the helm. The reason is that human beings are fallible by nature. They are prone to distraction and emotions. In addition, a human’s reflex capabilities are not as efficient as a machine’s. With spatial technology, automated vehicles can also determine the correct distance to maintain, enabling quicker reaction time if the car ahead stops abruptly or a lane change occurs. 

Traffic jams are also decreased when driverless cars are used. There have been multiple studies done on test roads with platooning exercises, displaying how automated cars fall in line with a generous space cushion between them, eliminating the ebb and regular traffic flow. Sensors allow for on-ramp entry of vehicles by making space without impeding traffic flow, in addition to recognizing construction and detours in real-time. Rubbernecking will be a thing of the past because the machine will not have the human curiosity of distraction. Shockwave jams caused by drivers tapping on their breaks and creating a daisy-chain effect will also be obsolete.

Stress-free parking is another way that autonomous vehicles will help improve our daily lives. People can be dropped off and collected at a chosen location while the car seeks out a vacant parking spot in-between. This cuts down on fuel usage and the stress that comes from being late for appointments.

As humans evolve to completely autonomous travel, they will also discover newly-found spare time to get things done, much like train or air travel. This time can be used either for work or family, without the worry of safety along the way.

Safety and accessibility is something that AI-controlled cars can bring to all Americans. There are substantial numbers of elderly and invalided citizens who cannot provide their own means of transportation. For them, automated driving will not only be a life-saver, but it will also add dignity by providing them with a sense of independence and comfort. 

 

How AI Can Improve Car Safety Features

Artificial intelligence has been in the public eye since the late 1990s. That was the moment IBM’s Deep Blue became the first computer to beat a grand-master chess champion. In 2011, many people watched the Jeopardy! episode featuring the question-answer system Watson as it beat two former champions. With all of the discoveries made since then, machine learning has helped nearly every industry on earth evolve. One of the top ways AI has served us is by helping us to be safer on the roads.

Even the safest drivers in the world are not perfect. Humans are fallible by nature, and we do not possess the reaction time of a machine. Because of this, the luxury of machine assistance elevates our abilities to not only keep ourselves safe but also those around us. We already have some car technology that does a beautiful job of this by warning us about our proximity to other drivers or objects, whether on the move or trying to park. Smart headlights help reduce dangerous situations by adjusting to the conditions in real-time. On-board diagnostics can alert us to a problem before it becomes a more serious issue, thereby saving us money and keeping us out of harm’s way.

Smart cars of today not only have sensors giving a 360-degree view outside the vehicle, but they can also monitor a driver’s body position from within the car. If a vehicle senses the driver is leaning due to sleepiness, intoxication, or a medical issue, it can alert the driver with a warning signal. OnStar systems can also be called in an emergency, and some cars make it a hands-free option.

As cars become smarter with more advanced AI systems, there will be fewer overall road accidents. The combination of artificial intelligence and the speed and distance of 5G’s reach will enable civil engineers and traffic planners to create more efficient roads from an abundance of real-time data. Traffic lights will be automated to satisfy the current traffic flow, cutting down on the risk of accidents. As more cars become fully automated, they will join the collective device-to-device communication knowing the optimal distance length and speed to avoid collisions. 

For drivers and residents, that means maximizing efficiency while also having fewer cars sitting idly in traffic, which means less pollution for the area. From a broader, public safety perspective, it means fewer road incidents to free up emergency road access, in addition to a generally safer mode of transportation.

Emerging Car Tech for 2021

The Consumer Technology Association (CTA) owns and produces the annual Consumer Electronics Show (CES). Each year, the latest and greatest technological innovations are shown to an awaiting public. The automobile industry is full of new ideas and enhancements on existing ideas, mostly centered around human safety and environmental conservation. Technology is even being incorporated long before cars leave the factory floor. Robots have begun assisting humans by working alongside them in the manufacturing sector. 

The world of technology is driven by a desire for CASE mobility: connected, autonomous, shared and electrified vehicles. This is an area that is constantly evolving. One on-going topic is the subject of self-driving cars. Autonomous taxi services will exist in the future, and companies like Waymo are moving closer than ever to perfecting safety, navigation and ride-sharing.

Much of the excitement and investment in the auto industry has turned to electrification, with some car companies claiming that in the coming years, a large percentage of their fleets will be electric vehicles or hybrid cars. The promise of cleaner air and lower carbon footprints has made electrification enticing. The industry still has a lot to work through, however, including placing more charging solutions in both cities and more rural areas.

AI-powered cockpits are going to be able to detect and protect drivers through facial recognition and palm print recognition . These will help personalize the driver and passenger experience through the same central panel, and a 3D multi-panel display and biometric-interactive system will allow the driver to control devices and see the car functions through head tilts and smiles. As 5G becomes more available, more services will become available as well to enhance the passenger experience. Some cars will come standard with connected subscriptions and infotainment packages, for example.

For people who want to have Alexa in their car alongside the Siri and Google Assistant crowds, Amazon now has Echo Audio available for in-car commands. Far-field speech recognition makes it possible for the device to recognize natural language in a noisy environment by using an eight-microphone arrangement. Passengers can check the news, weather, manage calendar events or make phone calls, all hands-free. They can even stream content from all the mainstream sources. Dashcams have been giving people peace of mind for several years. The latest iterations of this technology will offer wide-angle high-definition and be able to record and save footage if it detects an accident has occurred. Even the connection is unique, opting for a dedicated Wi-Fi to allow drivers to view a live-feed of the camera, as well as adjust settings and download or share footage. 

 

How AI Can Revolutionize Cars

Just like many other industries, artificial intelligence is making a huge change in the way we look at cars. Not just in the private sector, but also as a newly-emerging competitor for taxi and delivery services, especially when it comes to self-driving autonomous vehicles. Contrary to popular belief, the definition of an autonomous car really falls within a spectrum of definitions, depending on the level of machine/human collaboration. At its most basic, there is automation for driver assistance. This is when a system merely assists the driver’s motions but does not control anything itself. An example of driving assistance would be parking sensors. At the more advanced levels, the car and the human would each take turns controlling the car. This is something that used to feel like science fiction but is now a reality.

Self-driving cars increase the amount of power given to an artificially intelligent system, as opposed to relying solely on a human component. Sensors are a big part of the equation when it comes to self-driving cars. The system gets most of its input from real-world data that is being rapidly accumulated from hundreds of sensors located all over the vehicle. In today’s day and age, there are different levels of data input and control. Looking at highly automated and fully automated, the key difference is that humans still run a highly automated system and they choose to hand over temporary control. A fully automated system, however, is one that is making the machine the primary user. The vehicle is solely system-based. A human’s presence is still needed, but they do not interfere with any functions. A completely automated car is one that requires no assistance whatsoever from a driver as it navigates from point A to point B. When people refer to a robocar, the vehicle has enough sensors to make decisions based on its environment in order to deliver passengers safely to their destination. 

In addition to removing the worry of control, AI is seeking to appeal to generations that no longer want the burden of ownership, either. Many millennials choose shared economies and the newer pay-to-play services such as streaming over DVD rentals, rideshares over car rentals, and city bikes over buying their own. Likewise, the concept of private automobile ownership will seem archaic within the next two decades. 

 

Car Safety Features That Can Save Lives

Today’s cars are getting more and more intelligent. This isn’t in reference to the machinery itself, but rather the artificial intelligence that’s being incorporated into it. Cars of the future will no longer just be a simple means of transport. They will work alongside the driver to promote maximum efficiency and safety. That being said, there are responsibilities that people will still have in order to let the cars evolve. We are still miles away from having a fully automated system in place for all standard, affordable vehicles. 

One technological advancement that has already saved many people from potential accidents is the concept of sensor technology. This is essentially like having an extra pair of eyes on the top and sides of your car that can compensate for human limitations such as blind spots. It can also alert a driver if other cars start drifting into their lane. Despite all of this assistance, however, it is still vital that the driver maintain a nonstop vigilant line of focus while driving. In addition, cars will have reverse camera technology on display in front of them. This will enable drivers to see what’s behind them as they are backing up.

Machine learning and vision assistance are hot button topics these days when discussing AI and the automobile industry.  One major cause of automobile death is distraction. This could be a sleepy truckdriver or a teenager texting and driving, but the result is the same. Some AI firms have developed a way of detecting when drivers lose focus, and it initiates a series of suggestions, ranging from suggesting a break to gradually slowing down the vehicle.

In a sense, partial automation has already existed for quite some time. Cruise control has been around since the late 1940s, and power steering since the 1960s. Both of these features still require alertness frmo the driver and an instant ability to retake control if necessary.

One major caveat to technology is the learning curve. A driver is the worst person to ask to participate in a focus group to relearn a formerly simple task like changing A/C controls. Once technology itself ends up being the distraction, the message is lost.